State Cos Win a 3rd of Small Oil & Gas Fields in Auc­tion

The Economic Times - - Economy: Macro, Micro & More - Our Bureau

New Delhi: State-owned com­pa­nies have won a third of the small oil and gas fields in a gov­ern­ment auc­tion with the bal­ance go­ing to pri­vate firms such as Adani, Sun and many new­com­ers. The Cab­i­net on Wed­nes­day ap­proved the award of con­tract to de­velop 31 con­tract ar­eas com­pris­ing 44 dis­cov­ered small fields that had been ly­ing un­de­vel­oped for decades. The gov­ern­ment had re­ceived 134 bids for 34 of the 46 con­tract ar­eas in an auc­tion in Novem­ber. No suc­cess­ful bid­der was an­nounced for three ar­eas.

Bharat PetroRe­sources, a sub­sidiary of state-run Bharat Petroleum, won the rights to de­velop five con­tract ar­eas, while Prize Petroleum, a unit of Hin­dus­tan Petroleum, got three. In­dian Oil Corp, an­other state re­finer, also won three bids. Sun Petro­chem­i­cals, owned by Sun Phar­ma­ceu­ti­cals’ pro­moter Dilip Shanghvi, won a con­tract, mark­ing his en­try into the up­stream busi­ness. The firm had sub­mit­ted bids for 7 con­tract ar­eas. Adani Wel­spun Ex­plo­ration, which had bid for two fields, got one.

Akhil Teja Nat­u­ral Re­sources, a pri­vate firm that made 17 bids, the high­est, won not a sin­gle field in the auc­tion. Nip­pon Power se­cured two con­tract ar­eas al­though it had bid for eight. Megha En­gi­neer­ing, Ra­mayna Is­pat, Oil­max and Hin­dus­tan Oil Ex­plo­ration won two con­tract ar­eas each. Gem Lab­o­ra­to­ries also se­cured a field.

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